Category Archives: Bad Credit Rating

Improve Credit Rating – How to Raise You Score More Than 100 Points

Irena Bocheva asked:

Are you trying to improve credit rating? Do you want to increase your chances of getting approved for a mortgage or an auto loan? Are you hoping to get a favorable business loan, but fear your credit score won’t qualify you? Creditors, employers, insurers, landlords and many more are pulling up your credit report when evaluating your application. Because of the growing significance of your FICO score, a good credit score is no longer a luxury. It’s a necessity.

Here are 3 simple tips that will help you understand how fast credit repair works:

1 Evaluate your situation.

Do you need to raise your score with 5,10,50,100, 200 points? What are the specific requirements of creditors for a mortgage or auto loan in your area? In order to come up with a winning credit strategy, you have to know where you stand (current FICO) and where you need to be (desired FICO).

2 Winnow the chaff away from the grain.

Not all debt is created equal. Certain items in your credit report affect your score more adversely that others. The typical order of adverse items is bankruptcies, foreclosures, repossessions, loan default, collections, past due payments, late payments, declined credit, credit inquiries. Take a careful look at your report and highlight the items that affect your score most adversely. Also keep in mind that more recent accounts have bigger impact on your FICO than older accounts. Once you identify the most problematic accounts, start working on them.

3 Different strokes for different blokes.

Credit bureaus, collection agencies and original creditors can help you raise your score fast if you know how to approach them. Different strategies should be used for different agencies. For example, if you want to get a creditor to remove a one time late payment from your account, you have to be diplomatic and polite. Explain the sob story surrounding the one time late payment and promise to be a good customer in the future. When dealing with collection agencies, however, you can use more aggressive strategies. Ask for validation of debt-you’ll be surprised to find that most collection agencies don’t have the proper paperwork.

Always hassle till you reach a settlement amount that satisfies you. Keep in mind that collection agencies still make a handsome profit out of you even if you pay them 25% or less from what you actually owe. Also promise to pay ONLY if they agree to remove the negative item from your credit report. In a nutshell-use different strategies with different agencies if you want to achieve maximum results. There are different ways to improve credit rating. Knowledge about the credit system and the various loopholes in it, however, seems like the fastest route. Once you start thinking outside the credit box, you’ll be surprised to find how easy credit repair actually


How To Improve Your Credit Rating

Terry Edwards asked:

Poor credit ratings are common, and whether a person is considered wealthy, middle-class or poor does not seem to have a true relationship to their credit rating. Perhaps this trend is because some of us live beyond our means, or because we get into financial hardships that we have no control over, or maybe it’s due to simple procrastination. Whatever the reasons may be, many Americans are searching for a way to improve their credit rating.

If this describes you please know that you are in good company. Surveys prove that credits ratings are a concern for most American households. This article will provide some simple strategies for improving your credit rating.

Although credit ratings will not go up overnight, with time they can be improved. Start by getting a copy of your credit report. Check it thoroughly for accuracy. If you find any false or inaccurate information you should act immediately. Contact the reporting agency clearly identifying each mistake. Be exact in stating why it is wrong. It is wise to send a copy of your report with the errors circled along with any supporting documentation. Keep copies of all forms, letters and documentation that you send the credit bureaus.

The agency is required to investigate any relevant dispute within 30 days of receiving your letter. Anything that is not verified as accurate by a creditor is removed. If changes are made to your credit file you will be notified and the bureau will send you an updated copy of your credit report.

The next step in improving your credit rating is devising a spending plan. Ideally you want to reduce your debt to the degree that you are able to make payments on time – every time.

Being proactive is essential to improving a credit rating. If you are not able to make your payments on time call your creditors to negotiate a payment date or schedule. This will keep your accounts in better standing

If your credit is extremely bad, perhaps you’ve filed bankruptcy, you need to work at re-establishing good credit as soon as possible. Buy something on credit and pay it off according to payment schedule or earlier.

Other suggestions for improving your credit rating include using the services of a professional debt relief counselor. Many of such services and programs have been created over the last few years. These programs can save you money, time, and stress, as you improve your credit score.


How To Improve Your Credit Rating For A Better Life

Robin Boddy asked:

Whether it’s for a car loan, a new credit card or a mortgage, sooner or later you’re going to apply for credit and that’s why you need to take charge of your credit rating now. Thanks to the new Fair and Accurate Credit Transactions Act, you are entitled to one free credit report a year from each of the three major credit bureaus (which you must obtain from a joint source agencies have set up). But it’s up to you to monitor your rating, and your behavior, to make sure your score is up to par. That minimal effort will pay off in significantly lower interest rates, decreased damage from identity theft and, since nowadays potential employers may check applicants’ credit ratings, maybe even better job opportunities.

Your credit report is simply a listing of how much credit you currently have available, how much debt you have and how well you’ve met your payment obligations in the past, but it’s the key to your standing with potential lenders. Managing your credit involves scrutinizing your reports regularly for errors, reviewing them for signs of outside tampering and working to improve areas where your borrowing record is less than stellar. The most important thing you can do to boost your credit rating is to learn your score. If it’s great, maintain it. If it’s bad, fix it. It will mean more money in your pocket.

The source for free cut credit reports is You can order reports from the individual credit agencies, but then you’ll have to pay for the information. Prices vary but generally run around $10 per report. Two exceptions are if you’ve been turned down for credit in the past 30 days, or if you believe that you have been a victim of fraud, you are entitled to free reports from each of the bureaus.

It’s important to keep an eye on all three reports – they may not contain identical information, especially if inaccuracies have crept in, and you don’t know which company a potential lender will contact to get your record. But before ordering your reports, consider your strategy. You can order all three at once or you could spread them out throughout the year, for example, requesting one from a different company every four months. Distributing your requests gives you the best sense of your credit standing on an ongoing basis, allows you to react quickly to signs of identity theft and lets you see how your actions have affected your credit. But ordering all three of your credit reports at once gives you a good sense of your credit standing at a given moment in time and is especially helpful if you’re on the verge of applying for a significant loan and need to assess your chances.


7 Ways to Improve Your Credit Rating

Eddie Johnson asked:

In todays turbulent economic state, monitoring your credit score has never been more important. The global credit crunch has meant obtaining credit has never been more difficult and a poor credit rating has denied numerous people from borrowing the money they so desperately need.

This article offers seven quick and simple actions you can take today to improve your credit score and get back on track during these difficult times.

1. Get a Free Credit Report. There are several online services which are able to provide you with an up to date version of your credit report. Better still, obtain a 3-in-1 credit report which includes all the information the three main credit reporting agencies have about you.

2. Once you have your credit report, analyse the credit bureau scores. You know where you stand regarding credit and now have a figure to work with. Ideally you want a score of 700 or above which lenders will have no qualms about offering you credit. Anything below 620 requires improvement.

3. Analyse your credit report carefully and make a note of any errors which are present. These could be errors as simple as your name or address being spelled incorrectly. Every one of these errors need to be rectified and is the first step to improving your credit score. Write to each of the agencies which have incorrect information on file and supply any supporting documentation where necessary.

4. If you have been obtaining credit for a long time there could be accounts in your report which are older than seven years. Credit consumer law requires agencies to remove any accounts which are over seven years old, so write to the agencies asking them to do so.

5. The next step is to work on any late payment entries which may be present in your report. Approach your lender and ask if they are prepared to remove the entries because you are prepared to get your own house in order and work on paying off the loan. Your lender may refuse to do so and if this is the case, then again contact the credit bureaus and report the entries as errors. You may not be aware of this, but lenders have to respond within 30 days to any challenges and if they don’t the bureau is obliged to remove the accounts from your credit report.

6. Now it’s time to improve your credit rating. Ensure you are up to date with all of your payments each month and do not exceed any overdraft limits. The objective here is to pay down your debts, not max out any more limits!

7. While you should stay on top of all your payments, make sure you concentrate on the account with the highest interest rate first. This will save you money in the long run. Also, try not to just pay off the minimum monthly payments on your other accounts. If you can manage to pay a little extra each month you are also lowering the total amount you owe interest on.

These seven simple steps can drastically improve your overall credit score if you stick to them. In short, obtain your latest credit report and remove any old accounts and errors. Start paying down your debts and make sure it’s more than the monthly minimum payments. A little bit of work each month will see your credit rating improve in no time!


Improve Your Credit Rating Now – 3 Tips to a Better Credit Score

Roxanne Black asked:

A credit rating is a financial record that is attached to your name. It is vitally important that you keep your credit score high and clean. If you do not do this then you may find that it is very difficult to get anything financially related, such as credit cards and bank loans. The good news is however that you can improve your credit score using these top 3 tips. Find out how you can do it now

1- Always pay your bills on time

This is a major one and is the main reason most people have a bad credit score. You need to pay your bills as soon as possible, as soon as they arrive if you can. Even being just a little bit over can have an impact on your credit score. Do your best to get them paid on time.

2- Monitor your debt levels

This can be as simple as keeping an eye on your credit card account. The best way to handle a credit card account is to keep the credit available at under 50% of the credit that you have available to keep your credit rating clean. If you are using more of the credit then take steps to get it lowered. Find ways of paying it off if you want to get your credit rating raised.

3- Check your credit score

This is an important tip. You may be getting a bad credit rating even when its not your fault. You can raise it by removing false information and mistakes as these can happen often.


Credit Repair – Improve Your Credit Rating Quickly!

Chane Steiner asked:

As an American, it’s hard to walk down the street without somebody wanting to check your credit. If you have poor credit it’s important to learn techniques to improve your credit rating! Here are some of the best ways to do it:

Tip 1: It’s important to stay on top of the information game. It is your right to obtain a free credit report once every year from each of three major credit bureaus: TransUnion, Experian and Equifax. If you are really smart about it, you will get one every four months from each one by alternating. Go over these reports very carefully and look for the following:

Any negative item. You see, every negative item on your credit report can be disputed by you. If the agency cannot verify the negative claim within 30 to 45 days – even if it’s true – it must be stricken from your report!

Outdated negative items. All negative items on your credit report have a statute of limitations. After a given time period, they are supposed to drop off automatically. So, if you notice something that is 10 years old, you should dispute it immediately.

Items that have been paid in full and do not state so.

Any other item that catches your attention!

Tip 2: Start paying your bills on time. Regardless of past credit history, it’s never too late to start improving your credit rating. Pay on time every time and you will see positive changes begin to occur.

Tip 3: You should keep the balances of your credit cards below 30% of their limits or completely paid off to improve your credit rating. Max them at 30% of the actual maximum and then pay them in full every month. This is the second most important scoring variable (after making timely payments) that contributes to your credit score.

Tip 4: Break open your wallet and dig out some of those old credit cards. Use them and pay them promptly and in full. Long-standing credit accounts rate you higher than brand new ones. Keep that positive payment information flowing into the major credit reporting agencies to help to improve your credit rating.

There are many more tips and tricks that you can utilize to improve your credit rating quickly. These are the most powerful though. Use these and be diligent. You will begin to see impressive progress. Just stick to the plan and keep repeating it. It is very possible to improve your credit rating with a little effort and patience. Soon, you’ll be back at the top!


Improve Your Credit Rating Lightning Fast!

Will J. Irish asked:

Improve your credit rating super fast by following these tips.

Let’s face it, having bad credit can not only be demoralizing, but also in today’s economy, it can also be debilitating. Luckily there are actions you can take to improve your credit rating quickly. The first thing you’ll want to do is order all three of your credit reports. Experian, Equifax and Trans Union all keep a record of your credit reports, and each have their own credit rating methodology. Thanks to a recent change in consumer law, you are now entitled to one free credit report from each of the major three agencies. So let this be your first step.

Go to and follow the directions to obtain instant access to each of your credit reports. Now one recommendation I would suggest for the first time is to include your credit score with each credit bureau as you request your reports. They do charge a nominal fee for it, but it gives you a much needed benchmark in your efforts to increase your credit scores.

Once you’ve reviewed your reports looking for errors, and inconsistencies, here’s the specific trick I use to make the most headway. The trap that most people fall into is that once they order the reports, there is usually 15-18 pages of data which distracts the reader from knowing where to start. Here’s how to avoid that pitfall.

1. Take a highlighter and highlight only the items on the account that are negative.

2. Open a new spreadsheet and import only those accounts from each report. I use one worksheet for each credit bureau.

3. Now close your credit reports and work soley from your spreadsheet as you will now have complete focus on the problem areas of your account, and likely, it will be less than one page of information.

4. With that new focus, now write each of the three credit bureaus a dispute letter which will allow them 30 days to investigate and reply. Be sure to send it return receipt requested so your dispute is not ignored and the 30 day timeline has a time-stamp.

5. If they are unable to validate their negative reporting, by law they must remove it per your request. Much of the success of this process is going to rest in how well written your disputes are, and how timely you follow up with any requests.

Lastly, be very careful. On the Internet there is a lot of bad advice and illegal instruction. It’s important you follow a lawful and methodical approach which has testimonials of other’s success. Make sure the program you decide to follow doesn’t support file segregation, which involves an illegal, but common practice of building a sort of second identity.

You absolutely can improve your credit rating, it just will take a little work up front and wait for about 30 days. In no time you can be enjoying the improved credit rating you deserve.

If you’re in a real bind and need to improve your credit rating immediately, see the links below for details.


Simple Steps to Improving Your Credit Rating

Andrew Regan asked:

The first step to improving your credit rating is to check your credit report. This contains the history of your credit accounts and repayment record and is one of the main sources of information used to calculate your credit score. Make sure it’s accurate and up-to-date and if you disagree with anything, contact the relevant lender, explain the problem and ask them to remove or amend the entry.

Next, ensure you are registered to vote, as lenders use the electoral roll to check that you live where you claim to live, as a precaution against fraud. If you aren’t registered or are registered at another address, they may ask for further proof of residence or even turn down your application.

If you have divorced or separated from a partner and had a joint mortgage, bank, credit card or utility account then tell your lenders, cancel the joint accounts and reapportion the debt between you. If you don’t and your ex-partner has a patchy credit history, it could in turn lower your score.

Each credit application you make will trigger a search of your credit report and leave a record known as a footprint. Never fire off random applications for credit in the hope that one will be accepted, as if potential lenders see lots of footprints, they may assume you are desperate for money or even suspect a fraud. Ask for a quotation search, which will not show up to other lenders.

If you have unused credit accounts, close these and consider rolling up several expensive debts into a single, more cost-effective loan. Always make repayments on time and never take out more credit to pay off existing loans – if you’re having trouble, let your lenders know as they may be able to work out a schedule of payments you can afford. If special circumstances mean you’ve had problems in the past – for example, you had an accident – then you may be able to add an explanation to your credit report.

It is important to note that you should never lie or blur the truth on an application form – it is fraud, and lenders are likely to find out, which will make it harder for you to borrow in the future.

Your credit report changes with your circumstances, so it’s important you know what it contains and that everything is current and correct. If you notice any strange activity on your credit report, such as a loan application you didn’t make or a mystery account in your name, you could be a victim of Identity fraud. So, get in touch with the relevant lender and be prepared to provide proof that you’re not responsible. And remember, the earlier you act, the better.

Therefore, check that you have everything in place by arranging a free credit report it could help you get the best deals on loans, cards, mortgages and other forms of credit. So, it pays to improve your credit rating.


How to Improve Your Credit Rating and Raise Your Scores

Jeremiah James asked:

It’s a well known fact that a good credit rating is an important component of any person’s financial well being. If you have had trouble with your credit in the past and are looking for easy ways to improve your rating quickly and effectively, this article will provide you with some basics and simple ways to improve your score in no time.

If you want to improve your rating, first you’ll need to know the fundamentals of the scoring systems and how they work. There are several determining factors that go into how a reporting agency calculates a person’s credit worthiness. All of these factors combined are used in conjunction with a mathematical formula to generate a score that is indicative of a person’s propensity to pay back debt. In the next few paragraphs we will discuss what some of these factors are, and how you can work to improve them.

Total Debt vs. Available Credit

A large factor in determining your credit score is the total amount of debt you carry in relation to the total amount of credit available to you. Credit reporting agencies look for a total debt to available credit ratio of less than 35%. What this means for you is that you should try to keep your total balances on credit cards and lines of credit at less than 35% of the total credit line. Here’s an example:

If you have a line of credit with ABC Bank of $1000, you would need to keep the balance at $350 or less to stay within the acceptable debt to available credit ratio.

An easy way to improve your rating is to keep your balances on all lines of credit under this 35% threshold. Try to pay for purchases in cash, and only use credit cards when absolutely necessary.


An inquiry occurs any time you apply for new credit. A “hard inquiry” is an inquiry that will show up to other creditors when looking at your credit report. Credit reporting agencies track the number of inquiries into an individual’s credit to gauge the amount of credit shopping a person does. A large amount of inquiries over a short period of time usually demonstrates a lack of financial stability. You can avoid adversely affecting your score with excess inquiries by not applying for credit unless it is absolutely necessary. As a general rule, inquiries to your credit only stay on your report for about six months.

Although controlling these factors may seem simple, sometimes special circumstances can work against a person’s best efforts to improve their credit rating. An emergency need for money can obviously affect a person’s ability to keep their total credit balances under 35%. However, if you take proactive steps every day to work toward staying within these limitations, even these special circumstances won’t prevent you from improving your credit rating. Remember, these changes won’t take place overnight. But by attacking these problems at their source you will vastly improve your credit rating over time.